Customers Robert Thompson and Ranita Reed look over a selection of marjiuana products at Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California. less

Customers Robert Thompson and Ranita Reed look over a selection of marjiuana products at Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in ... more

Photo: Amy Osborne, Special To The Chronicle

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Customers Barbara Larocca and Lance Hughston make a purchase at Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California.

Customers Barbara Larocca and Lance Hughston make a purchase at Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California.

Photo: Amy Osborne, Special To The Chronicle

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Eager customers wait in line after the opening of Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California.

Eager customers wait in line after the opening of Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California.

Photo: Amy Osborne, Special To The Chronicle

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Every register is full with eager customers at Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California.

Every register is full with eager customers at Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California.

Photo: Amy Osborne, Special To The Chronicle

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Shea Johnson takes a photo of Johnathan Gutierrez at Oakland’s Harborside on the first day of recreational marijuana sales in California.

Shea Johnson takes a photo of Johnathan Gutierrez at Oakland’s Harborside on the first day of recreational marijuana sales in California.

Photo: Amy Osborne, Special To The Chronicle

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Decorations and balloons are seen outside of Harborside Health Center to celebrate the the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California.

Decorations and balloons are seen outside of Harborside Health Center to celebrate the the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California.

Photo: Amy Osborne, Special To The Chronicle

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Every register is full with eager customers at Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California.

Every register is full with eager customers at Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California.

Photo: Amy Osborne, Special To The Chronicle

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Customers Robert Thompson and Ranita Reed get excited after making a purchase at Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, California. less

Customers Robert Thompson and Ranita Reed get excited after making a purchase at Harborside Health Center on the first day of recreational marijuana sales in California on Monday, January 1, 2018 in Oakland, ... more

Chris Conrad and his wife Mikki Norris (right) are the first customers to purchase legalized marijuana at the Berkeley Patients Group dispensary on the first day of recreational cannabis sales in Berkeley, Calif. on Monday, Jan. 1, 2018. Assisting them with the transaction is Sue Gardea (left). less

Chris Conrad and his wife Mikki Norris (right) are the first customers to purchase legalized marijuana at the Berkeley Patients Group dispensary on the first day of recreational cannabis sales in Berkeley, ... more

Nicole Rice is one of the first customers in line at the Berkeley Patients Group dispensary before the doors opened at 6: 00 a.m. on the first day of legalized recreational cannabis sales in California.

Nicole Rice is one of the first customers in line at the Berkeley Patients Group dispensary before the doors opened at 6: 00 a.m. on the first day of legalized recreational cannabis sales in California.

A customer displays identification to a security guard before entering the Berkeley Patients Group dispensary on the first day of legalized recreational cannabis sales in Berkeley, Calif. on Monday, Jan. 1, 2018. less

A customer displays identification to a security guard before entering the Berkeley Patients Group dispensary on the first day of legalized recreational cannabis sales in Berkeley, Calif. on Monday, Jan. 1, ... more

Tyler Hess, who recently relocated from Indiana, picks up marijuana products that she pre-ordered online at the Berkeley Patients Group dispensary on the first day of legalized recreational cannabis sales in Berkeley, Calif. on Monday, Jan. 1, 2018. less

Tyler Hess, who recently relocated from Indiana, picks up marijuana products that she pre-ordered online at the Berkeley Patients Group dispensary on the first day of legalized recreational cannabis sales in ... more

From left, state Sen. Nancy Skinner, Berkeley Patients Group COO Sean Luse and Berkeley Mayor Jesse Arreguin cut the ribbon at the cannabis dispensary on the first day of legalized recreational marijuana sales in Berkeley, Calif. on Monday, Jan. 1, 2018. less

From left, state Sen. Nancy Skinner, Berkeley Patients Group COO Sean Luse and Berkeley Mayor Jesse Arreguin cut the ribbon at the cannabis dispensary on the first day of legalized recreational marijuana sales ... more

Customers wait to be called to the counter to make a purchase at the Berkeley Patients Group dispensary on the first day of legalized recreational cannabis sales in Berkeley, Calif. on Monday, Jan. 1, 2018.

Customers wait to be called to the counter to make a purchase at the Berkeley Patients Group dispensary on the first day of legalized recreational cannabis sales in Berkeley, Calif. on Monday, Jan. 1, 2018.

Anthony Moraga of Merced leaves the Berkeley Patients Group dispensary after being the first in line at 4:00 a.m. to buy eighth of an ounce of marijuana on the first day of legalized recreational cannabis sales in Berkeley, Calif. on Monday, Jan. 1, 2018. less

Anthony Moraga of Merced leaves the Berkeley Patients Group dispensary after being the first in line at 4:00 a.m. to buy eighth of an ounce of marijuana on the first day of legalized recreational cannabis sales ... more

Recreational marijuana sales commence at Berkeley Patients Group on Monday.

Recreational marijuana sales commence at Berkeley Patients Group on Monday.

Photo: Jill Tucker / San Francisco Chronicle

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A look at the marijuana being sold at Berkeley Patients Group on Monday, the first day recreational marijuana sales became legal in California.

A look at the marijuana being sold at Berkeley Patients Group on Monday, the first day recreational marijuana sales became legal in California.

Photo: Jill Tucker / San Francisco Chronicle

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A budtender displays cannabis at the Higher Path medical marijuana dispensary in the San Fernando Valley area of Los Angeles, California, December 27, 2017. At the stroke of midnight on January 1, pot lovers in California may raise a joint, instead of a glass of champagne. America's wealthiest state is legalizing the growth, sale and consumption of recreational marijuana, opening the door to the world's biggest market. less

A budtender displays cannabis at the Higher Path medical marijuana dispensary in the San Fernando Valley area of Los Angeles, California, December 27, 2017. At the stroke of midnight on January 1, pot lovers in ... more

Medicinal cannabis chocolate bars are stored under the counter at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that hold a locally-issued medical card instead of one officially issued by the state once public sales of marijuana becomes legal Jan. 1. less

Medicinal cannabis chocolate bars are stored under the counter at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that hold a ... more

Mark Henderson smells the aroma from a jar of Ghost Tan medicinal cannabis at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. Henderson has been treating his osteoarthritis with marijuana for the past two years. The rules may vary for medicinal cannabis users that hold a locally-issued medical card instead of one officially issued by the state once public sales of marijuana becomes legal Jan. 1. less

Mark Henderson smells the aroma from a jar of Ghost Tan medicinal cannabis at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. Henderson has been treating his osteoarthritis with ... more

Mark Henderson selects medicinal cannabis from Laura Sotak (left) at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. Henderson has been treating his osteoarthritis with marijuana for the past two years. The rules may vary for medicinal cannabis users that hold a locally-issued medical card instead of one officially issued by the state once public sales of marijuana becomes legal Jan. 1. less

Mark Henderson selects medicinal cannabis from Laura Sotak (left) at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. Henderson has been treating his osteoarthritis with marijuana ... more

Laura Sotak examines medicinal cannabis for patient Mark Henderson at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that hold a locally-issued medical card instead of one officially issued by the state once public sales of marijuana becomes legal Jan. 1. less

Laura Sotak examines medicinal cannabis for patient Mark Henderson at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that hold a ... more

Laura Sotak examines a Ghost Tan medicinal cannabis bud for a patient at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that hold a locally-issued medical card instead of one officially issued by the state once public sales of marijuana becomes legal Jan. 1. less

Laura Sotak examines a Ghost Tan medicinal cannabis bud for a patient at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that hold ... more

Laura Sotak examines a bud of Ghost Tan medicinal cannabis through a magnifier at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that hold a locally-issued medical card instead of one officially issued by the state once public sales of marijuana becomes legal Jan. 1. less

Laura Sotak examines a bud of Ghost Tan medicinal cannabis through a magnifier at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users ... more

Products from Octavia Wellness, which sells cannabis products marketed at elderly customers looking for alternatives to opioids for pain relief and better sleep, in San Francisco, Dec. 26, 2017. As recreational marijuana becomes legal in California on Jan 1, 2018, entrepreneurs are rushing in to a nascent market, but many are finding expertise and financing challenging. less

Products from Octavia Wellness, which sells cannabis products marketed at elderly customers looking for alternatives to opioids for pain relief and better sleep, in San Francisco, Dec. 26, 2017. As recreational ... more

Laura Sotak examines a Ghost Tan medicinal cannabis bud through a magnifier at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that hold a locally-issued medical card instead of one officially issued by the state once public sales of marijuana becomes legal Jan. 1. less

Laura Sotak examines a Ghost Tan medicinal cannabis bud through a magnifier at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that ... more

Jars of medicinal marijuana are displayed at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that hold a locally-issued medical card instead of one officially issued by the state once public sales of marijuana becomes legal Jan. 1. less

Jars of medicinal marijuana are displayed at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that hold a locally-issued medical ... more

A menu provides a full description of the medicinal cannabis currently available at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users that hold a locally-issued medical card instead of one officially issued by the state once public sales of marijuana becomes legal Jan. 1. less

A menu provides a full description of the medicinal cannabis currently available at The Apothecarium dispensary in San Francisco, Calif. on Friday, Dec. 29, 2017. The rules may vary for medicinal cannabis users ... more

Chris Conrad and his wife Mikki Morris (right) are the first customers to purchase legalized marijuana at the Berkeley Patients Group dispensary on the first day of recreational cannabis sales in Berkeley, Calif. on Monday, Jan. 1, 2018. Assisting them with the transaction is Sue Gardea (left). less

Chris Conrad and his wife Mikki Morris (right) are the first customers to purchase legalized marijuana at the Berkeley Patients Group dispensary on the first day of recreational cannabis sales in Berkeley, ... more

Eager customers wait in line the early hours of the morning after the opening of Harborside in Oakland on the first day of recreational marijuana sales in California.

Eager customers wait in line the early hours of the morning after the opening of Harborside in Oakland on the first day of recreational marijuana sales in California.

Photo: Amy Osborne, Special To The Chronicle

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Anne Luna (center) gets excited after she makes her first legal purchase of recreational marijuana at Harborside in Oakland.

Anne Luna (center) gets excited after she makes her first legal purchase of recreational marijuana at Harborside in Oakland.

Photo: Amy Osborne, Special To The Chronicle

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CEO of Harborside, Steve DeAngelo, cuts a ribbon at 6 a.m. to mark the first day of recreational marijuana sales in California.

CEO of Harborside, Steve DeAngelo, cuts a ribbon at 6 a.m. to mark the first day of recreational marijuana sales in California.

Photo: Amy Osborne, Special To The Chronicle

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Cash is exchanged for a purchase of a marijuana plant at Harborside in Oakland on the first day of recreational marijuana sales in California.

Cash is exchanged for a purchase of a marijuana plant at Harborside in Oakland on the first day of recreational marijuana sales in California.

Photo: Amy Osborne, Special To The Chronicle

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Customers pack Harborside in Oakland to make their first legal purchases of recreational marijuana.

Customers pack Harborside in Oakland to make their first legal purchases of recreational marijuana.

Photo: Amy Osborne, Special To The Chronicle

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Legal Marjiuana is displayed at Oakland’s Harborside on the first day of recreational marijuana sales in California.

Legal Marjiuana is displayed at Oakland’s Harborside on the first day of recreational marijuana sales in California.

Photo: Amy Osborne, Special To The Chronicle

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Marjiuana plants are boxed up for a customer at Harborside in Oakland on the first day of recreational marijuana sales in California.

Marjiuana plants are boxed up for a customer at Harborside in Oakland on the first day of recreational marijuana sales in California.

Photo: Amy Osborne, Special To The Chronicle

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Jose Medina (right) and nephew Stevie Medina purchase marijuana plants in the early hours of the morning at Harborside in Oakland on the first day of recreational pot sales in California.

Jose Medina (right) and nephew Stevie Medina purchase marijuana plants in the early hours of the morning at Harborside in Oakland on the first day of recreational pot sales in California.

Photo: Amy Osborne, Special To The Chronicle

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Barbara Larocca and Lance Hughston make a purchase at Harborside in Oakland on the first day of recreational marijuana sales in California.

Barbara Larocca and Lance Hughston make a purchase at Harborside in Oakland on the first day of recreational marijuana sales in California.

Photo: Amy Osborne, Special To The Chronicle

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A man walks between the row of busy registers and a line of eager customers at the opening of Harborside in Oakland on the first day of recreational marijuana sales in California.

A man walks between the row of busy registers and a line of eager customers at the opening of Harborside in Oakland on the first day of recreational marijuana sales in California.

Photo: Amy Osborne, Special To The Chronicle

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New era opens in California with first sales of recreational marijuana

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It was six hours past midnight, but the crowd inside the Berkeley Patients Group counted down the seconds.

“Happy new year,” they yelled at precisely 6 a.m. Monday as a cashier rang up the cost of three joints, a $45.37 purchase representing one of the first recreational marijuana sales in the state.

The moment marked the beginning of a new industry in California, one that’s heavily regulated and taxed, with revenue reaching several billion dollars per year.

The day has been long anticipated by cannabis advocates who pushed for voters to pass Proposition 64 in November 2016, largely decriminalizing marijuana and allowing for the commercial sale of products to adults 21 or older.

Earlier, Berkeley Mayor Jesse Arreguin and Democratic state Sen. Nancy Skinner joined a couple of dozen people outside the Berkeley Patients Group waiting for the first sales.

“I’m stoked about this historic moment, not just for Berkeley, but for the state of California.” Arreguin said. “This is a long time coming.”

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The handful of shops making recreational sales Monday acquired both local and state licenses. They included Harborside, Purple Heart and Blum in Oakland; Berkeley Patients Group and Cannabis Buyers Club of Berkeley; 7 Stars Holistic Healing Center in Richmond; Mercy Wellness in Cotati; and Sparc and Solful in Sebastopol. Statewide, more than 400 shops have licenses to sell commercial cannabis.

Dale Gieringer, director of California Norml, a cannabis advocacy group, postponed a winter vacation by one day to see legal sales commence.

“This marks the welcome end of a century of prohibition —104 years to be accurate,” he said after watching the first sales at Harborside. “It’s wonderful that people aren’t being imprisoned for marijuana the way they used to be.”

At Purple Heart dispensary in Oakland, Keith Stephenson, chief executive and founder, watched a diverse array of people stream through the doors, including a well-coiffed senior citizen in a bright green windbreaker who was just ahead of a 20-something man in workout gear and a bike helmet.

In the 11 years he’s operated the dispensary, Stephenson has referred to the buyers as patients and had to correct himself a few times Monday morning as he got used to calling them “customers.” He recalled all the years he went to work wondering if he would get arrested for selling marijuana.

While Oakland and Berkeley were among the first to authorize recreational marijuana, additional locations are expected to open in coming days and weeks, including outlets in San Francisco, where in-fighting among the city’s supervisors stalled recreational permits until Jan. 6.

But many parts of the state are expected to bar the sales altogether, including Marin and San Mateo counties and the city of Walnut Creek.

At some shops, the coming-out party featured live music, coffee and doughnuts, prizes for those first in line and speeches from supportive local politicians — a far cry from the days when the cannabis trade operated in the shadows.

“I feel like it’s been a struggle and a fight,” said Nicole Rice, 28, who was among the first in line at the Berkeley Patients Group, adding that it took years and voter persistence to pass the law. “It’s historic.”

Marijuana remains illegal by federal law. But several states, including Washington, Oregon, Colorado, Nevada and now California, have legalized both medicinal and recreational use.

Since November 2016, California law has allowed adults 21 or older to possess and transport up to 1 ounce of cannabis flower, as well as up to 8 grams of extract or infused foods. Smoking in public is still prohibited.

Medical marijuana will continue to be available through existing dispensaries to those with a valid ID and a doctor’s recommendation. But as of Monday morning, all customers buying cannabis products will pay a 15 percent state excise tax, which is expected to eventually bring in $1 billion or more a year for marijuana research, addiction prevention and boosted law enforcement, among other things.

Recreational customers must pay sales tax as well, unlike those with a state-authorized medical identification card. In addition, cities can choose to impose local cannabis taxes.

In Oakland, taxes for most customers will increase from 14.25 percent to 34.25 percent, according to Harborside officials.

Long lines of customers were willing to pay up Monday.

Anthony Moraga spent $120 on 3.5 grams of top-shelf buds, and another $32 in taxes, at Berkeley Patients Group.

“It’s the first time we can come out in public,” he said, “paying taxes on our legal purchase.”